Given the proportional tax function as t = 10 per cent = 0.1 and the marginal propensity
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Given the proportional tax function as t = 10 per cent = 0.1 and the marginal propensity to consume as 0.75, fi nd the change which will occur in the equilibrium level of income when there is
(a) An increase in government expenditure by 100.
(b) An increase in autonomous tax by 150.
(c) An increase in transfers by 150.
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